TaxTMI 
TaxTMI 
2022 (5) TMI 878
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.... that during the period 2016 - 17, the RCN imported duty-free by the appellants under Advance Authorization licenses were being diverted to other units which were not authorized by DGFT and that they also sold substantial quantity of processed cashew kernels violating the conditions of the notification. Searches were conducted by the DRI at the premises of the appellant. Statements were recorded. 2. It appeared to the department that the appellant had obtained 4 Advance Authorization license from Jt. DGFT, Trivandrum to import RCN in shells without payment of customs duty. As per the condition attached to the Advance Authorization issued to them, they are required to follow inter alia the following conditions:- (a) The exempt go....
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....e Authorization and conditions of the Customs Notification. 5. On the basis of the above, Show Cause Notice was issued to the appellant as well as the Customs Broker. The appellant submitted their written statement vide their letter dated 22.3.2017 and additional submissions were made by them at the time of personal hearing dated 9.8.2017. After due process of law, the original authority held that the appellants have not complied with the conditions prescribed in the Notification No. 18/2015 in respect of 1149.59 MTs of RCN in shell imported duty-free under 15 Bills of Entry and ordered for confiscation of the same. The adjudicating authority also ordered to release 578.40 MTs of RCN in shell valued at Rs.5,78,40,000/- imported duty-free....
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....ellant had their own six other processing units and the imported RCN were sent to these six units for being processed to cashew kernels for export. It is not disputed that all the other units belong to the appellant. This fact has been recorded in para 36 of the impugned order. This being so, even though, all the other units are not endorsed in the Advance Authorization, such dispatch of the imported RCN directly from the port to the appellant's own units for processing would not constitute diversion / sale or transfer of the imported goods as there is no change of title in the goods. He adverted to condition (x) in Notification No. 18/2015-Cus dated 1.4.2015 which reads as under:- "(x) That the said authorization shall not be tran....
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....te. The same has been noted by the adjudicating authority in para 58.1 of the impugned order. Even though the EODC has been issued to the appellant, the adjudicating authority has noted that the appellant has not satisfied the conditions contemplated in the notification and therefore the action intended under the Customs Act, 1962 is just and proper. The learned counsel explained that when the export obligation certificate has been issued by DGFT after examining the shipping bills and related documents, the Customs Department cannot allege that the appellant has violated the conditions of notification. 10. The learned counsel relied upon the decision of the Tribunal in the case of Regin Exports Vs. Commissioner of Customs, Tuticorin vide....
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....ly the factory premises at Elamkulam, Kalluvathukkal Post, Kollam has been endorsed in Advance Authorization, all other units belong to the appellant. The department does not have a case that the other units to which the RCN was dispatched from the port belongs to any other person. As already reproduced above, clause (x) of Notification No. 18/2015 allows transfer of the imported materials to a job worker for processing subject to complying with the conditions of relevant Central Excise notifications. Again, in para 4.35 of Handbook of Procedures, it is stated that if the manufacturer / importer is not required to obtain central excise registration, it is not required to insist for endorsement of the name of supporting manufacturers in the ....